Question

A building rents for $5 per square foot, and there is an index of 1.5. the following year the index climbs to 1.8. the rent is tied to the index. what will the rent be per square foot?

Answer 1

The rent per square foot will be $6.

Given,

initial index = 1.5

increased index = 1.8

rent = $5 per Sq. feet

Divide the new index by the original index.

1.8 ÷ 1.5 = 1.2        ...(1)

Multiply the answer from step one by the original rent.

1.2 x $5 = $6 adjusted rental rate.

What is a percentage lease?

A percentage (overage) lease involves a minimum monthly rent, plus a percentage of the gross sales in excess of an amount specified in the lease. Mostly used for income producing property, with the easiest

and best example being how a company would pay rent when renting a space in a mall paying a fixed monthly fee and then at the end of the year paying an extra sum based on sales.

To learn more about percentage lease from given link

brainly.com/question/23061908

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